Question

Because governmental funds accounting systems are designed to measure the extent to which financial resources obtained during a period are sufficient to cover claims against them and the net financial resources available in the future, they have a flow of ____ resources measurement.

a) Inflow
b) Outflow
c) Accrual
d) Modified

Answer 1

Governmental funds accounting systems use a flow of modified resources measurement, considering both inflows and outflows.

Step-by-step explanation:

The governmental funds accounting systems use a flow of modified resources measurement. This means that they track the flow of financial resources obtained during a period to determine if they are sufficient to cover claims against them and the net financial resources available in the future. The modified resources measurement considers both inflows and outflows of resources.